Connie Knox and Andrea Cardoza have capital accounts of $360,000 and $280,000, respectively. Bob Lee and Mike McClure are to join the partnership. Lee invests $55,000 in the partnership for which he receives a capital credit of $55,000. McClure purchases a one-half interest from Knox for $230,000 and a one-fourth interest from Cardoza for $100,000.
Instructions
a. Prepare the journal entries to record the admission of Lee and McClure to the partnership.
b. Determine the capital balances of the partners after the admission of Lee and McClure.

Question

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The Answer of Connie Knox and Andrea Cardoza have capital accounts of $360,000 and $280,000, respectively. Bob Lee and Mike McClure are to join the partnership. Lee invests $55,000 in the partnership for which he receives a capital credit of $55,000. McClure purchases a one-half interest from Knox for $230,000 and a one-fourth interest from Cardoza for $100,000.
Instructions
a. Prepare the journal entries to record the admission of Lee and McClure to the partnership.
b. Determine the capital balances of the partners after the admission of Lee and McClure.

Connie Knox and Andrea Cardoza Have Capital Accounts of $360,000